Discovering opportunities using Nansen has been made easier now with the Signal Feeds. This feed is meant to surface important onchain activities to your attention.
The card belows shows an example of a Smart Money Token Flow signal. We can see that the recent inflow of AXL token into Smart Money's wallet is 13x the recent average. Something we should pay attention to and dig deeper.
There are a few categories of signals that will come through this feed. You can filter for the signals that you're interested to look at. Let's take a deeper look at each of them.
CEX Token Flow
We can see on the top left of the card, there is a green arrow pointing up. This indicate the activity highlighted on this card has a more bullish bias. The outflow of PENDLE token, which is 4.13x the recent average, assume that purchase has been made on the CEX and withdrawn into investors' own custody.
Let's look at another example. Here, we have a red arrow pointing down. Price of YFI token has been up 81% in the last 7 days, and it seems that investors are moving their tokens to CEX so that it can be sold. A profit taking on the recent gains.
SM Token Flow
This signal card surfaced a massive jump in Smart Money's acquisition of MPL token. The recent $265k worth of token is 54x the recent average. A definitely must watch!
While, we want to keep track of what token Smart Money has been buying, we want to also keep an eye for what they've been selling. On this card, we can see that there was a 18x increase in LDO token being sent out by Smart Money. If you have exposure to LDO or looking for a short opportunity, it is worth digging deeper.
DEX Token Flow
Tracking DEX flow can allow you to identify sudden major accumulation or selling of tokens by market participants. This surface tokens that showed a massive demand compared to the recent average.
In this card example, we can see a green arrow pointing up, with a corresponding activity of outflowing OPTIMUS from DEX, which is 7.79x more than the recent average outflow.
Activity of selling can be seen on this card with a red arrow pointing down. FLC has seen a inflow into DEX which is 6.75x the recent average.
Fresh Wallet Flow
Fresh wallets are new wallets that was created on the blockchain recently. New users joining the space create new wallets, but more importantly, new wallets are also created when someone wants to hide their tracks and have a new token that has no association with his current wallet. Heavily followed wallets often find it difficult to accumulate a sizeable position over time, especially on a low liquidity token, as their buying activities are being followed by wallet followers. This causes price to run up before they can fill their full position. So to prevent this, they often create new wallets so they are able to build their position in "stealth" mode. Hence, it is important to keep track of tokens that are heavily accumulated by fresh wallets.
On this card, we can see a green arrow pointing up. It is showing us that there are 59x more accumulation by fresh wallet. Definitely one to follow up on. Top Balances Change
Tracking the activities of Whales in a particular token often can give you an indication of the conviction they have in the token. If they are adding to their already large exposure, they continue to have conviction on the token and is buying more. If they are cutting their exposure, we want to be cautious as they might be looking to exit and price might suffer in the short term, but it present a buying opportunity on a potential price dop if you have conviction on the token and is looking to get in.
This card has a green arrow pointing up and is telling us that the top 25 holders of uPPG is increasing their exposure to the token and there is a massive 36x jump over the daily average.
This card shows a red arrow pointing down, and we can see that there is a decrease in the top 25 holder's balance.